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Austria: Pay and benefits

Original and updating author: Silva Palzer, Eversheds Austria
Updating authors: Klaus Cavar and Lena-Sophie Kaltenegger, Eversheds Austria


  • The payment of remuneration by an employer in return for work performed by its employees is an essential element of the employment contract. (See General)
  • Payment of wages is subject to little statutory regulation, and is dealt with mainly by collective agreements, works agreements and employment contracts. (See Payment of wages)
  • Other than certain deductions permitted or required by statute, the employer is generally not permitted to make deductions from an employee's pay without the employee's consent. (See Deductions)
  • Discrimination in remuneration is prohibited on grounds including sex, ethnic affiliation, religion or belief, age, sexual orientation and disability, and criteria for pay-setting must take into account the principle of equal pay for equal work or work of equal value. (See Equal pay)
  • There is no statutory national minimum wage, although binding minimum rates are set by collective agreements, which cover most employees. (See Minimum wages)
  • The main form of pension provision is a statutory, earnings-related occupational scheme, based on mandatory employer and employee social insurance contributions. (See Pensions)
  • Employers must withhold employees' income tax at source, and employers and employees must pay statutory social insurance and related contributions. (See Income tax and social security)
  • Employees who are absent from work due to sickness or injury have a statutory entitlement to sick pay from their employer for 10 to 16 weeks, depending on length of service. (See Pay for employees not at work)